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Inside this Article
Car Insurance
Deductibles
Deductibles Pricing
Of Auto Insurance
Car Insurance - learn how to
deductibles pricing of your auto insurance here
is some important points:
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When deciding what insurance
policy you want to purchase, choosing a
deductible is an important step.
After all, you
will have to pay the deductible for each
and every situation in which you require your insurance
company to cover damages.
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Deciding how much you
are willing to pay and how often you think you will
need to make an insurance claim will help you
decide what deductible amount is right for you.
In addition, the premium you pay, or the price of your
total coverage annually, can be lowered by choosing a
higher deductible. In other words, if you
are willing to pay higher out-of-pocket costs, you can
lower the total cost of your insurance.
Purchasing an auto insurance policy doesn't
have to be confusing. You want a policy to take care
of your expenses in the event of accident, theft,
vandalism or most any other instance in which there is
damage to your own or someone else's vehicle.
By knowing what your
state requires, what your needs are, what discounts
you qualify for and how much coverage you want for
your car, you will be able to choose the right policy.
Reality Check:
If you had an accident
at the end of the first year, you would pay more by
having a $500 deductible instead of $250 if you
could save $50 every three months. How? At $250 for
three months, your coverage will cost you $1,000 a
year. An accident in which you pay $250 in repairs
makes the total $1250. If you had a $500 deductible
and your premium was $200 ($50 less) for three months,
you would pay $800 in premiums and $500 in repairs, a
total of $1300. However, if you had an accident at the
end of two years you would have paid premiums of
$2,000, plus $250 in repairs, making your cost $2,250
in our theoretical case
of $250 deductible. At $500 deductible,
premiums for two years would be $1600, plus $500 in
repairs, for a total of $2,100, a savings of $150
total, or $75 a year. Let's take it one more year. At
$3,000 worth of premiums for three years, and $250 for
repairs, we're facing off $3,250 against $2400 in
premiums plus $500 for repairs...,$2,950 - $300
savings, or $100 a year.
'What-if' nothing
changed, but you had an accident at the end of 10
years? You would average a savings of one hundred
seventy five dollars a year, still not the 200 it
looked like at first.
Is it worth it? Take
into consideration your (and anyone else's who drives
under this policy) driving habits and statistics. Auto
Insurance has a list of things to consider such as
age, type of vehicle and so on.
Keep in mind though, that if the chances of being in
an accident are one in a hundred, that one chance
still exists!
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